China - Hong Kong Central Bank Agreement for Blockchain Adoption
China has entered into a development pact with de facto central bank of Hong Kong to give fresh endorsement to Blockchain adoption. The Hong Kong Monetary Authority (HKMA) has confirmed it signed a Memorandum of Understanding (MoU) with a subsidiary of PBoC (People’s Bank of China). Meanwhile, the pact will provide a proof of concept alternative platform for trade finance from 2020s first quarter. Alternatively, the agreement will integrate both HKMA’s trade connect and PBoC’s Trade Finance Platform.
Hong Kong Interbank Clearing LTD & Institute of Digital Currency
The Hong Kong Interbank Clearing Limited and the Institute of Digital Currency of the PBoC will represent both central banks. Statement from the pact noted that:
“Once the connection has successfully been established, it will provide firms in both places with more convenient trade finance services and enable banks in Hong Kong to expedite the expansion of their trade finance business,”
A few days ago, China’s President Xi Jinping endorsed the use of blockchain technology across the country. The president appealed for blockchain innovation and expansion of the technology across China’s domestic economy.
As a result, several entities as well as some Chinese regional governments have pledged blockchain funds valued at $5.7 billion; to support blockchain development. For instance, the 1911 Group contributed a whopping 100 million yuan (Approximately $14.3 million) towards the blockchain kitty. Head of HKMA, Eddie Yue noted during the signing of the memorandum, that a holistic approach was critical to lift Hong Kong’s fintech development to fresh levels.
The news follows the Shanghai Bund Summit where a former deputy director of the Congressional Financial and Economic Affairs Committee; exclaimed that China would be the first nation to issue a national stable coin. The deputy also contented that Facebook’s Libra was doomed for failure.
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Richard M AdrianBlockchain Analyst with a demonstrated history of working in the writing and editing industry. Skilled in WordPress, Editing, SEO Copywriting, Copy Editing, and Blog Marketing. When I am not writing, analyzing bulls/bears - I will be listening to music, reading a thrilling novella or hiking. Email me at Richardmadrian@gmail.com - And we could talk about anything - business or dragons.
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